Question : Which of the following tells long-term solvency?
Option 1: Debt equity ratio
Option 2: Proprietary ratio
Option 3: Fixed assets ratio
Option 4: All of the above
Correct Answer: All of the above
Solution : The solvency ratio assists us in determining a company's ability to meet long-term financial obligations. The debt-to-assets ratio, interest coverage ratio, equity ratio, and debt-to-equity (D/E) ratio, proprietary ratios are the main solvency ratios. Hence, the correct option is 4.
Question : ________ratio is a variation of the debt-equity ratio and gives the same indication as the debt-equity ratio. In this ratio, total assets are expressed in relation to long-term debts.
Question : The liquidity ratio is also called________?
Question : Which of the following shows the Long term solvency?
Question : Which of the following statements is incorrect?
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